Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 61-50

1961-1 C.B. 811

Full Text

Rev. Rul. 61-50

Section 5271 of Internal Revenue Code of 1954 provides, in part, that permits to procure or use distilled spirts free of tax, procure, deal in, or use specially denatured distilled spirits shall be issued in such form and under such conditions as the Secretary of the Treasury or his delegate may by regulations prescribe.

Section 211.161 of the Distribution and Use of Denatured Alcohol and Rum Regulations, relating to withdrawal permits to procure specially denatured alcohol and specially denatured rum, and section 213.109 of the Distribution and Use of Tax-Free Alcohol Regulations, relating to withdrawal permits to procure tax-free alcohol, provide that where the applicant desires to withdraw more than one-sixth of his annual requirements during any month, he shall state his needs and furnish sufficient information for the Assistant Regional Commissioner, Alcohol and Tobacco Tax, to determine whether such withdrawals should be authorized.

Held , it is the intent of the regulations, cited above, that where a permittee, whose withdrawal permit does not so provide, desires to withdraw more than one-sixth of the annual quota of specially denatured alcohol or taxfree alcohol in any calendar month, an application be filed on Form 1450, Application And Withdrawal Permit To Procure Spirits Free of Tax, or Form 1485, Application And Withdrawal Permit Of User To Procure Specially Denatured Spirits, for a superseding withdrawal permit to be issued by the Assistant Regional Commissioner, Alcohol and Tobacco Tax, of the Region in which the permittee is located. The quantity of specially denatured alcohol, specially denatured rum, or taxfree alcohol authorized to be withdrawn under the prior permit, but which has not been withdrawn, is not a factor to be considered by the Assistant Regional Commissioner in acting on an application for a superseding withdrawal permit, as the withdrawal allowance under the superseding permit will be based on the needs of the permittee during the period of the new permit.